All revenue collected for paid parking and parking infringement notices is returned to the City of Port Phillip as consolidated revenue. These funds are then allocated through the normal budgetary planning cycle to provide for a variety of council services. Many of these services, such as libraries, home help and other human services, are subsidised requiring other sources of revenue to meet community expectations. These funds help to meet these expectations.
All revenue collected from parking permits is collected in a specially allocated reserve account. This reserve account is used to fund the implementation of the Parking Plan: Towards 2010.
Parking Permit Fees
The system of paying for residential parking permits, over and above Council rates, has been in place for many years, and is common to many Councils. The current fees are part of the Parking Policy.
Council derives a certain percentage of its income from rates. The balance comes from other sources that include grants, fees and charges. The services that Council provide out of rates are outlined in a booklet that is sent with the rates notices every year. Many of these services are not always used by every rate payer, but are necessary for a community to function.
One of the key reasons of charging parking permit fees above rates is that the administration of parking restrictions in areas where parking is in high demand would be borne by the entire community, including those who cannot, or choose not, to own a car, or those who occupy property with adequate off-street parking.
For this reason, the issue of residential parking fees remains on a 'user-pays' basis. The benefit residents derive from holding a permit is that they are exempt from restrictions that are placed to encourage parking turnover of drivers not residing in the street.